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More Than Half Cryptocurrency Speculators Are Chinese, Says A Senior Researcher

These years witness the glory of bitcoin as its prices spiked close to $ 20,000, but it plunged from a peak of almost $ 20,000 last year to new 2018 lows around $ 6,000 in the past three months, dropping more than 65%, CoinMarketCap data shows. Bitcoin has wiped out nearly 3 times the market value of Tesla and 5.5 times of Twitter.

What makes bitcoin so volatile?

“More than half of the cryptocurrency speculators are Chinese, while obviously its government is holding negative sentiment in this space; And the launch of bitcoin futures last December in U.S. is building a big short position. Put it this way, the cryptocurrency market has suffered the Davis Double Play in the Q1 of 2018.” Zhang Jie, a senior researcher of crypto market, told China Times, a Chinese financial news outlet.

Bitcoin value plunged 75% in 3.5 months

The cryptocurrency market had been in a downtrend between March 25 to March 30, with Bitcoin falling all the way from a high of $ 9,000 to $ 6,700 in six days, down more than 20%; and the past month saw over 40% drop from BTC’s March 5 high of $11,660 in three consecutive drops.

The price of bitcoin has plunged more than 75% in 3.5 months from a record high of almost $ 20,000 last year, during which, bitcoin’s demise continued with 7 three-day drops.

Zhang pointed out that every drop was triggered by capital flight. At present, the price of bitcoin is only one step away from the previous low, and it is highly likely that it may go further low.

As the Bloomberg analyst recently warned that bitcoin might reach $ 900 in its future fall, Zhao Dong, an early bitcoin adopter and KOL in the Chinese bitcoin community, made comment yesterday,

“Anything is possible, even bitcoin price crashes to zero, not to mention $ 900. I’m not bearish on bitcoin, instead, what I mean is if you cannot accept that bitcoin might drop to zero, you are not qualified to enjoy the delight bitcoin brings when it spikes to $ 1,000,000. Risk and opportunity are mixed.”